Merci Grace (ex-Head of Growth at Slack) on PLG, interviewing, storytelling, building a diverse team, hiring salespeople, building a growth team, and much more

Jul 11, 2022 Episode Page ↗
Overview

Mercy Grace, founder, investor, and former Head of Growth at Slack, shares insights on product-led growth, effective onboarding, and hiring. She discusses how Slack innovated PLG, common mistakes companies make, and strategies for building diverse teams and compelling narratives.

At a Glance
15 Insights
59m 6s Duration
16 Topics
5 Concepts

Deep Dive Analysis

Merci Grace's Accidental Path to Product Leadership

Lessons from Venture Capital for Founders

The Art of Storytelling for Business Leaders

Unpacking Slack's Core Identity as a Work Tool

Slack's Pioneering Approach to Product-Led Growth

Key Activation Metrics and Growth Strategies at Slack

Optimizing Onboarding for User Engagement

Common Mistakes in Implementing Product-Led Growth

Identifying When Your Product Is Suited for PLG

Distinguishing Product-Led, Bottom-Up, and Sales-Driven Growth

The Critical Importance of Day Zero Value

Determining the Right Time to Hire Your First Salesperson

Strategies for Hiring and Retaining Amazing Talent

Building a Narrative-Driven Company Culture

When and How to Build a Growth Team

Fostering Diversity in Product Teams

Product-Led Growth (PLG)

A strategy where users can immediately derive value from a tool without needing conversations or webinars, and the product itself drives adoption and expansion.

Bottom-Up Adoption

A growth approach where a product can be adopted by anyone at any level within an organization, not just specific functions or senior roles.

Day Zero Value

The immediate, tangible benefit a user experiences the very first time they interact with a product, which is crucial for retention in product-led models.

Connectors (User Persona)

Individuals within a user base who are naturally more social, enjoy introducing people, and are more likely to invite others to use a collaborative product.

Story-Driven Company Culture

An organizational environment where compelling narratives and context often outweigh raw data or numbers in decision-making and communication.

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What did Merci Grace learn from being a VC that helps her as a founder?

She learned the critical importance of storytelling for founders and that deal outcomes are often influenced by interpersonal dynamics and personality clashes, not just business fundamentals.

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What is a common misconception about Slack's internal focus?

Many people, even internally, didn't realize that Slack was strictly a tool for work and not intended to be a consumer or social product, leading to internal debates about features like blocking.

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What was Slack's key activation metric for new teams?

Slack found that a team needed at least three real human beings and 50 real messages to reach a critical activation point where the product started to take off.

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What is a common mistake companies make when trying to implement product-led growth?

A frequent error is overcomplicating onboarding with too much information, like carousels, assuming users will invest as much attention as the product team does.

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When should a company consider itself ready to build a growth team?

A company is ready for a growth team when it feels it has achieved product-market fit, even if imperfect, and can demonstrate that users find value after an initial introduction.

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What is a key indicator that a product can successfully pursue a product-led growth strategy?

A strong indicator is whether an individual at any seniority level within a function can pick up and use the product without needing buy-in from higher-level executives or integration with sensitive systems.

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When is the right time for a founder to hire their first salesperson?

Founders should consider hiring their first salesperson when they are absolutely maxed out on sales efforts themselves, or when their target customers, particularly in enterprise, expect and want to interact with a salesperson.

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How can companies improve diversity in their hiring, especially for women?

Companies should proactively seek out and interview a large number of women, as passive inbound or referrals may yield fewer candidates due to women often being less aggressive or risk-seeking in job applications.

1. Start Pitches with Action

When telling your story (pitch, blog, conference), start in the middle of the action or with your unique insight to immediately grab attention, like a thriller movie. This is crucial because getting attention is the P0 for any interaction, ensuring your audience stays engaged.

2. Design Product from Onboarding

Think about the user’s first introduction and the steps to full value from the very beginning of product design, rather than treating onboarding as a last-minute addition. This ensures the onboarding experience is deeply intertwined and native to the product, providing a seamless learning curve.

3. Regularly Observe User Onboarding

Schedule monthly sessions to watch real users (or target demographics) sign up and onboard to your product. This “embarrassing but educational” practice reveals the true human experience and helps avoid relying solely on conversion numbers, providing invaluable qualitative insights.

4. Prioritize Day Zero Value

Ensure your product provides immediate, tangible value to users, rather than promising benefits months down the line. Products lacking day-zero value struggle with product-led growth because users will easily churn if they don’t see instant utility.

5. Hire for Company & Role Fit

Approach hiring as a two-way street, aiming to find candidates who will genuinely thrive in your company’s specific culture and the role’s demands. Recognize that success at one company doesn’t guarantee success at another, so focus on fit over a generic “successful PM” profile.

6. Utilize Work Sample Projects

For individual contributor PM roles, assign a project (ideally with choice from multiple problems) to assess a candidate’s thinking, solution quality, communication, and basic technical understanding. This reveals more than traditional interviews and helps identify future high-performers who can deliver technically possible and creative solutions.

7. Invest in Early Diversity

Actively seek out and interview a diverse range of candidates, especially women and people of color, to counteract passive inbound biases and lower conversion rates for earlier/riskier businesses. Early diversity creates a self-reinforcing mechanism, fostering a more comfortable and respectful environment that attracts further diverse talent.

8. Assess Product-Led Readiness Early

Consciously decide if your product can truly be product-led by determining if any individual at any seniority level can pick it up and use it without needing high-level buy-in or access to sensitive systems. This strategic decision should ideally be made before coding begins, as it dictates your growth motion.

9. Simplify Onboarding Drastically

Avoid overcomplicating onboarding with multi-step carousels or extensive informational screens, as users have limited attention and don’t care about your product as much as you do. If your onboarding doesn’t feel like you’re “dumbing it down,” it’s likely too complex.

10. Offer Invites Early & Often

For collaborative or social products, embed opportunities to invite others throughout the entire product experience, not just once. This catches “connector” users who are naturally inclined to share, while allowing others to ignore them without negative impact.

11. Extend Free Trial Periods

Allow users to continue using your product for longer during a free trial, as incrementally more people will convert. User timing for purchase is independent of your schedule, often aligning with their own project cycles or quarterly budgets.

12. Define Core Product Identity

Clearly establish your product’s fundamental purpose (e.g., Slack as a “tool for work” vs. social platform). This core identity provides a guiding principle that simplifies thousands of small product decisions and prevents feature creep.

13. Hire First Salesperson Strategically

Bring in your first dedicated salesperson when the founder is absolutely maxed out on sales activities, or when your target customers explicitly expect and prefer to interact with a salesperson before making a purchase. This indicates a natural pull from the market.

14. Build Growth Team Post-PMF

Start building a dedicated growth team once you have a clear sense of product market fit, even if it’s initially achieved through “white glove” onboarding. A growth team can then accelerate and refine this fit, but a foundational product experience is necessary first.

15. Don’t Replicate Without Context

Do not replicate product features or designs from successful companies without understanding their underlying context or effectiveness. Many seemingly successful features might be based on failed experiments or not even be working for the original company, leading to wasted effort.

No one has built Slack before.

April Underwood

Every pitch should start in the middle of the action like a thriller or like a drama.

Merci Grace

No one cares about your product the way that you do.

Merci Grace

If you don't want to even do three hours of like free work for a company, you probably don't want to work at that company.

Merci Grace

The easier you make it to come in, also the easier it can be to leave.

Merci Grace

Storytelling for Pitches and Conference Talks

Merci Grace
  1. Start with an outline to clarify the story's arc.
  2. Begin in the middle of the action, like a thriller, to immediately capture attention.
  3. Backfill details later, but prioritize getting attention first.

Continuous User Onboarding Research

Merci Grace
  1. Schedule regular sessions (ideally once a month) to talk to human beings.
  2. Recruit people who fit your user demographic or are existing users.
  3. Observe them signing up and walking through the product's onboarding experience.

Hiring for Individual Contributor PM Roles

Merci Grace
  1. Give candidates an actual problem to solve, ideally allowing them to pick from a few options.
  2. Assess the quality of their solutions, ensuring technical possibility and creativity.
  3. Evaluate their ability to tell a compelling story and structure a narrative around their solution.
  4. Check if they understand how to measure the impact of their proposed solution.
3
Minimum number of people for Slack team activation Real human beings, not bots
50
Minimum number of messages for Slack team activation Real messages, not people
2015
Year Women in Product community started Community has been active since this year